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British American Tobacco

British American Tobacco has challenged the economic uncertainty, reducing the market and what are called “ill-considered regulation of our industry” to create a 3pc increase in revenue to £ 15.4bn and profit before tax, up 12.4pc 4,9 billion pounds.

The results obtained allow BAT to announce £ 1.25bn share buyback and dividend increase for the year to 11pc final dividend of 88.4p, payable on May 3.
Share repurchase program is more than in 2011. Last year, BAT spent £ 750m purchase 28 million shares.
Despite the good results, the company warned that cigarette smuggling is a serious threat to business and industry.

Richard Burrows, chairman said: “The expansion of illegal trade is a constant and growing threat to business A sharp increase in excise taxes, the pressure on consumer disposable income, ill-considered regulation of our industry, all makes life easier and more profitable for traders of illegal products, such as smuggling and counterfeiting.”

The company also said that while the overall market for cigarettes is reduced, there are signs the rate of change was slow. BAT said its volumes fell 0.4pc for the year. However, the decline was offset by higher prices and increased profitability. In addition, the company increased its market share.

“Our results for the year are set out in the revenue growth, improved operating profitability and market share growth through our successful brands, is enhanced by the deployment of the product and packaging innovation,” said Mr. Burrows.

Increased productivity was mainly due to the growth of the Asian division of the bat. The company said it expects the global cigarette market will remain at 5500000000000 cigarettes; more than 40pc are sold in China.

Profits rose at four main areas of the company – in the Asia-Pacific, South America, Western Europe and EEMEA (Eastern Europe, Middle East and Africa). Nevertheless, Asian profits of 1.5 billion pounds ahead of America in £ 1,4.

The company continued to protest against the introduction of plain packaging for cigarettes with a warning, it will only help counterfeit market.

Nicandro Durante, executive director, says the company supports a number of measures taken under the Framework Convention of the World Health Organization’s Tobacco Control (FCTC), increasing the risk of other illicit trade. He said: “We remain critical of other measures proposed by the FCTC, which may result in a significant increase in excise duties, the prohibition of retail display and a simple packaging – all of these measures may play into the hands of organized crime, creating ideal conditions for a further increase in illegal trade.”